Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States.
Adequate balance sheet and fair value.
Share Price & News
How has Cogeco's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CGO has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: CGO exceeded the Canadian Media industry which returned 3.6% over the past year.
Return vs Market: CGO exceeded the Canadian Market which returned 4.5% over the past year.
Price Volatility Vs. Market
How volatile is Cogeco's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StTaking A Look At Cogeco Inc.'s (TSE:CGO) ROE
2 weeks ago | Simply Wall StDo Institutions Own Cogeco Inc. (TSE:CGO) Shares?
4 weeks ago | Simply Wall StIs Cogeco Inc.'s (TSE:CGO) High P/E Ratio A Problem For Investors?
Is Cogeco undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CGO (CA$95.05) is trading below our estimate of fair value (CA$396.8)
Significantly Below Fair Value: CGO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CGO is poor value based on its PE Ratio (22.1x) compared to the Media industry average (10x).
PE vs Market: CGO is poor value based on its PE Ratio (22.1x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: CGO is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: CGO is overvalued based on its PB Ratio (2x) compared to the CA Media industry average (0.7x).
How is Cogeco forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CGO's forecast earnings growth (37.6% per year) is above the savings rate (1.4%).
Earnings vs Market: CGO's earnings (37.6% per year) are forecast to grow faster than the Canadian market (10.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CGO's revenue (2% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: CGO's revenue (2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if CGO's Return on Equity is forecast to be high in 3 years time
How has Cogeco performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CGO has high quality earnings.
Growing Profit Margin: CGO's current net profit margins (2.8%) are lower than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: CGO's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: CGO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CGO had negative earnings growth (-53.6%) over the past year, making it difficult to compare to the Media industry average (5.3%).
Return on Equity
High ROE: CGO's Return on Equity (14.1%) is considered low.
Return on Assets
Return on Capital Employed
How is Cogeco's financial position?
Financial Position Analysis
Short Term Liabilities: CGO's short term assets (CA$706.9M) exceed its short term liabilities (CA$548.5M).
Long Term Liabilities: CGO's short term assets (CA$706.9M) do not cover its long term liabilities (CA$4.0B).
Debt to Equity History and Analysis
Debt Level: CGO's debt to equity ratio (130.3%) is considered high.
Reducing Debt: CGO's debt to equity ratio has reduced from 186.4% to 130.3% over the past 5 years.
Debt Coverage: CGO's debt is well covered by operating cash flow (28.1%).
Interest Coverage: CGO's interest payments on its debt are well covered by EBIT (3.7x coverage).
Inventory Level: CGO has a high level of physical assets or inventory.
Debt Coverage by Assets: CGO's debt is not covered by short term assets (assets are 0.2x debt).
What is Cogeco's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CGO's dividend (2%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: CGO's dividend (2%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).
Stability and Growth of Payments
Stable Dividend: CGO's dividends per share have been stable in the past 10 years.
Growing Dividend: CGO's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41%), CGO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Philippe Jetté (54yo)
Mr. Philippe Jetté, P.Eng, has been President and Chief Executive Officer of Cogeco Inc. and Cogeco Communications Inc., since September 01, 2018 respectively. He serves as Director of Cogeco Inc. since Ja ...
CEO Compensation Analysis
Compensation vs Market: Philippe's total compensation ($USD2.55M) is above average for companies of similar size in the Canadian market ($USD1.61M).
Compensation vs Earnings: Philippe's compensation has been consistent with company performance over the past year.
|Executive Chairman||1.4yrs||CA$2.24m||0.82% CA$12.4m|
|Senior VP & CFO||5.3yrs||CA$1.44m||0.000010% CA$151.6|
|President of Cogeco Connexion||4.1yrs||CA$1.38m||no data|
|Senior VP||0yrs||CA$1.25m||no data|
|Senior VP & Chief Technology and Strategy Officer||3.5yrs||no data||0.00010% CA$1.5k|
|Senior VP of Corporate Affairs||6.3yrs||CA$1.14m||0.021% CA$324.0k|
|Senior VP & Chief Public Affairs and Communications Officer||1.3yrs||no data||no data|
|Senior VP & Chief Human Resources Officer||4.3yrs||no data||0.012% CA$184.4k|
|VP & Treasurer||8.2yrs||no data||0.0066% CA$100.2k|
Experienced Management: CGO's management team is considered experienced (4.1 years average tenure).
|Executive Chairman||1.4yrs||CA$2.24m||0.82% CA$12.4m|
|Independent Director||22.1yrs||CA$75.00k||0.026% CA$396.3k|
|Independent Director||0.08yrs||no data||no data|
|Lead Director||1.1yrs||CA$103.13k||0.0094% CA$142.5k|
|Independent Director||4.1yrs||CA$129.25k||0.014% CA$218.6k|
|Independent Director||8.1yrs||CA$127.50k||no data|
|Independent Director||1.1yrs||CA$94.00k||no data|
|Independent Director||0.5yrs||no data||no data|
Experienced Board: CGO's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CGO insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Cogeco Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Cogeco Inc.
- Ticker: CGO
- Exchange: TSX
- Founded: 1957
- Industry: Cable and Satellite
- Sector: Media
- Market Cap: CA$1.516b
- Shares outstanding: 15.95m
- Website: https://corpo.cogeco.com
Number of Employees
- Cogeco Inc.
- 5, Place Ville Marie
- Suite 1700
- H3B 0B3
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CGO||TSX (The Toronto Stock Exchange)||Yes||Subordinate Voting Shares||CA||CAD||Dec 1986|
|CGEC.F||OTCPK (Pink Sheets LLC)||Yes||Subordinate Voting Shares||US||USD||Dec 1986|
|76E||BST (Boerse-Stuttgart)||Yes||Subordinate Voting Shares||DE||EUR||Dec 1986|
Cogeco Inc., through its subsidiaries, operates in the communications and media sectors in Canada and the United States. It operates in two segments, Communications and Other. The company provides Internet, video, and telephony services; and colocation, network connectivity, hosting, cloud, and managed services. It also owns and operates 23 radio stations; and Cogeco News, a news agency. The company provides its services under the Cogeco Connexion name in Quebec and Ontario; and Atlantic Broadband name in the United States. It serves residential and business customers. The company was founded in 1957 and is headquartered in Montreal, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 00:06|
|End of Day Share Price||2020/02/24 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.